State oil giant Abu Dhabi National Oil Company (ADNOC) intends to settle its US dollar-denominated senior unsecured bonds in ADNOC Distribution, paying up to $1.195 billion in cash, along with up to $4.18 million in applicable interest.

The Exchangeable Bonds, which bear a coupon of 0.70%, will be settled upon maturity on June 4, 2024, ADNOC stated.

ADNOC issued the Exchangeable Bonds in May 2021, together with the offering of some 375 million shares in ADNOC Distribution. The option to settle the bond through share conversion will expire on May 4, 2024.

ADNOC stated it will settle the bond and retain ownership of the underlying shares, which amount to approximately 7% of the registered share capital of ADNOC Distribution. ADNOC Distribution’s free float will remain at 23% following the Exchangeable Bonds’ redemption. 

ADNOC said it will continue to maintain a stable shareholding level in ADNOC Distribution upon maturity of the Exchangeable Bonds.

(Writing by Bindu Rai, editing by Seban Scaria)